How to Launch a Successful Record Label

Are you passionate about music? Launch a recording label. It's a lucrative venture.

Major record labels make approximately $19 million a day from streaming music. That's a whopping $800,000 every hour. Read that again.

Thanks to the Internet, it's easy to start a major or tiny independent record label and generate a good response from a music-appreciative audience.

But, how do you start a successful record label?

Choose a (Unique) Record Label Name

All the good names are taken, as you'll soon find out.

But you still have to think of a name for your record label. Go for something unique that represents the type of music you want to release to your audience.

For example, don't call your label "Alternative Rock Records" when you plan on releasing Country music. This name will work against you.

Finding the desired name for your label is just half the journey. Google-search (and social media-search) the chosen name to see if someone else is using it already.

Pick a Business Structure

What type of business is your record label? Is it a limited company, partnership, or sole proprietorship? Decide early on the business category your label falls into.

If your record label is a limited company, then it's a separate entity from you and you'll have to file taxes, which will be available for public view.

A limited company is laden with several advantages. One is that personal asset protection is assured if the company folds. Secondly, your label comes across as credible and highly reputable in the eyes of prospective artists.

Brand Your Label

Branding is important for any business, and a record label is no exception. 

The first step in branding is creating a logo. A logo defines your label as it appears on your social media pages, websites, contracts, and on CD/vinyl sleeves.

Your logo will depend on your personal preferences or the type of music you will be releasing. You can go for a simple logo or an eye-catching logo. Or you can hire a graphic designer to help you create a style and color theme.

If you don't have money to hire a skilled graphic designer, don't worry. You can apply for a short-term loan. Search for "best auto loan" or "car title loans near me" to get an affordable loan.  You may get the loan within a day.

Create a Social Media Presence

The next step is to have a social media presence. Create social media accounts on Twitter, Facebook, and Instagram-these accounts are a must-have when running a label.

Around 4.15 billion people are active on social media globally with 98.5% of these active users accessing Facebook via mobile phones.

Besides social media accounts, create a SoundCloud account for your record label. Then post relevant content and hashtags regularly to drive traffic to your several social media accounts. Also, create a website for your label.

Today's music market has an array of music channels and sub-genres than ever before. It's also cheaper to enter the music industry, with online music distribution possible. However, you may want to keep your day job before your music breaks even.